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The country’s mines mean wealth for the next 30 years

Santo Domingo.- Mining director Alexander Medina on Monday affirmed that the country’s mineral reserves will pump wealth into the economy for the next 30 years, which in his view is a real opportunity for the nation’s development.

He estimated that the country’s exports jumped 20% and the deficit trade decline around US$1.3 billion based on gold’s current price.

He said the reserves are worth more than US$60 billion.

He said foreign investment in the mining sector topped US$3.5 billion in the last six years, or 15.1% of all foreign investment into the country from 2006 to 2012.

Speaking before the American Chamber of Commerce monthly luncheon, Medina said the mining sector will be one of Dominican Republic’s biggest taxpayers in the coming years.

He noted that once the investment by EnviroGold Las Lagunas is paid off, estimated for 2014, and Barrick Pueblo Viejo scheduled for 2016, tax revenue will increase significantly. Both operations will pay a 3.2% fee of gross smelter return, 25% tax on income and 28.75% of net profits.

Medina said in 2013 mining, together with tourism, agriculture, free trade zones, retail and industry, will be one of the biggest contributors to GDP, exports, foreign exchange earnings and taxpayers.

Investor confidence

Medina said mining projects will open this year for gold, silver and copper sulfides and Barrick Pueblo Viejo gold and silver tailings in the Pueblo Viejo dam by Australia’s PanTerra Gold, in addition to the resumption of bauxite extraction at Las Mercedes, Pedernales.

The official said with Xstrata Nickel Falcondo, the country will have five active metal mining operations, whereas the 50 current non-metallic mines produce cement, aggregates and limestone, ornamental rocks, calcium carbonate, lime, gypsum and ceramics.

He revealed that two Portland cement clinker furnaces will start operating this year and will process limestone and gypsum.

Medina said the new furnaces are installed by Panamericana Investments in Boca Chica and Cementos Andino in Pedernales, in addition to those already operated by Cemex, in San Pedro, and Cibao cement, Santiago and Domicen in Peravia.

Source: Dominican Today

Category: DR News |

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Last updated October 24, 2016 at 6:05 PM
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